Calculates the Dupont formula and presents reasons that justify the company's profitability and motivate capital investment. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement 2018 2019 Sales $1,855,000 $2,150,000 Cost of Goods Sold 823,000 985,000 Gross Profit 1,032,000 1,165,000 Selling, General & Admin. Exp. (SG&A) 520,000 438,000 Depreciation 75,000 150,000 Earnings before Interest and Taxes (EBIT) 437,000 577,000 Interest Expense 38,000 45,000 Earnings before Taxes (EBT) 399,000 532,000 Taxes (35%) 139,650 186,200 Net Income $259,350 $345,800 Datos por acción 2018 2019 Earning per Share (EPS) $1.25 $3.00 Cash Dividends $1.15 $2.10 Market Share (Price) $8.00 $11.00 Ratio Price/Earning (P/E) 15.20 veces 8.03 veces Outstanding Shares 25,000 25,000 Razones financieras de la industria 2019 Current Ratio 8.3 veces Quick Ratio (Acid Test) 8.1 veces Inventory Turnover Ratio 7 Days Sales Outstanding (DSO) 30 días Assets Turnover Ratio 12 veces Return on Assets (ROA) 8.1 Return on Equity (ROE) 17.25% Return on Investment (ROI) 15.5% Profit Margin 3.3% Debt/Equity Ratio 50% Price /Earning Ratio (P/E) 5.1 veces
Calculates the Dupont formula and presents reasons that justify the company's profitability and motivate capital investment.
|
|
2018 |
2019 |
|
Cash |
$63,000 |
$201,000 |
|
Accounts Receivable |
199,000 |
305,000 |
|
Marketable Securities |
81,000 |
42,000 |
|
Inventories |
441,000 |
455,000 |
|
Prepaids |
5,000 |
9,000 |
|
Total Current Assets |
789,000 |
1,012,000 |
|
Property, Plant, and Equipment, net |
858,000 |
858,000 |
|
Total Assets |
$1,647,000 |
$1,870,000 |
|
|
|
|
|
Account Payable |
$150,000 |
$100,000 |
|
Accruals |
101,000 |
95,000 |
|
Total Current Liabilities |
$251,000 |
$195,000 |
|
Bonds Payable |
405,000 |
575,000 |
|
Total Liabilities |
656,000 |
770,000 |
|
|
|
|
|
Common Stocks |
700,000 |
700,000 |
|
|
291,000 |
400,000 |
|
Total |
991,000 |
1,100,000 |
|
Total Liabilities & Equity |
$1,647,000 |
$1,870,000 |
|
Income Statement |
2018 |
2019 |
|
Sales |
$1,855,000 |
$2,150,000 |
|
Cost of Goods Sold |
823,000 |
985,000 |
|
Gross Profit |
1,032,000 |
1,165,000 |
|
Selling, General & Admin. Exp. (SG&A) |
520,000 |
438,000 |
|
|
75,000 |
150,000 |
|
Earnings before Interest and Taxes (EBIT) |
437,000 |
577,000 |
|
Interest Expense |
38,000 |
45,000 |
|
Earnings before Taxes (EBT) |
399,000 |
532,000 |
|
Taxes (35%) |
139,650 |
186,200 |
|
Net Income |
$259,350 |
$345,800 |
|
Datos por acción |
2018 |
2019 |
|
Earning per Share (EPS) |
$1.25 |
$3.00 |
|
Cash Dividends |
$1.15 |
$2.10 |
|
Market Share (Price) |
$8.00 |
$11.00 |
|
Ratio Price/Earning (P/E) |
15.20 veces |
8.03 veces |
|
Outstanding Shares |
25,000 |
25,000 |
|
Razones financieras de la industria |
2019 |
|
Current Ratio |
8.3 veces |
|
Quick Ratio (Acid Test) |
8.1 veces |
|
Inventory Turnover Ratio |
7 |
|
Days Sales Outstanding (DSO) |
30 días |
|
Assets Turnover Ratio |
12 veces |
|
|
8.1 |
|
|
17.25% |
|
|
15.5% |
|
Profit Margin |
3.3% |
|
Debt/Equity Ratio |
50% |
|
Price /Earning Ratio (P/E) |
5.1 veces |
Dupont analysis measures overall financial position of company. It bring together net profit margin which measures the profitability of company on sale, with assets turnover ratio which measures assets efficiency and equity multiplier which measures financial leverage. The formula is
ROE = net profit margin*total assets turnover*equity multiplier
by solving this we get
ROE =net profit/equity
Step by step
Solved in 3 steps
